Montreal home sales drop 11 per cent since last year
A sign advertising the sale of a duplex is shown in Montreal, Friday, March 4, 2022. THE CANADIAN PRESS/Graham Hughes
The residential real estate market boom in the Greater Montreal area has probably reached 'its peak' while the data for June point to a market stabilization.
There were 11 per cent fewer residential transactions in June 2022 compared to June 2021, for a total of 4,078, according to data released by the Quebec Professional Association of Real Estate Brokers (APCIQ) Wednesday. That's below the average of 4,333 transactions in the month of June since 2017.
Median prices for single-family homes also moderated last month, reaching $570,000. This is a 12 per cent increase from June 2021, but a $6,000 decrease from May 2022.
"Although market conditions remain very tight in favour of sellers, the next few months will finally see a downward trend in the level of overbidding and a slowing down of the sustained increase in prices compared to 2021," predicted Charles Brant, director of the APCIQ's market analysis department, in a news release.
"Overall, prices have been stabilizing since last May, announcing the peak of the market in Montreal, especially in a context where it is becoming increasingly difficult for households to qualify for a mortgage," he added.
The number of properties for sale in the Montreal area increased for the sixth consecutive month. Listings reached a total of 12,370, an increase of 15 per cent compared to June 2021.
The Island of Montreal had the largest decrease in transactions, a 20 per cent decline. The South Shore and Laval areas each saw a 4 per cent decrease in the number of transactions.
Transactions decreased by 7 per cent on the North Shore in June, while they fell by 13 per cent in Saint-Jean-sur-Richelieu. The Vaudreuil-Soulanges area remained stable.
- This report by The Canadian Press was first published in French on July 6, 2022